A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a longo term government and corporate bond fund, and the third das The bill money market fund that yields a rate of 8%. The expected returns and standard deviations are as follows: a Stock Fund (S) Bond Fund (B) E(R) 16% 12% O(R) 38% 15% The nu 3. Draw a tangent from the risk-frce rate to the opportunity set. What does your graph show for the expected return and standard deviation of the optimal portfolio? (1.0 marks) 4. What is the Sharpe ratio of this optimal portfolio? We assume that the tangency portfolio is with expected return approximately 15.6% and standard deviation approximately 16.5%. (0.5 marks)